TBO.com - TBO is Tampa Bay Online

Fee Leaves Continental Fliers Holding The Bag

ADVERTISEMENT

The Associated Press

Published: September 5, 2008

DALLAS - Continental Airlines said today it is charging some coach customers $15 for a first checked bag, matching a similar fee imposed by most other major U.S. carriers.

A company spokeswoman said the fee would help offset high fuel costs, which are driving the losses of Continental and other carriers this year.

The fee took effect immediately on tickets for travel in the United States and Puerto Rico, the U.S. Virgin Islands and Canada for travel starting on Oct. 7 or later.

Bags that exceed weight and size restrictions could be subject to additional fees, the airline said.

Houston-based Continental said the fee wouldn't apply to elite members of its frequent-flier program, those in first- or business-class seats, customers traveling on full-fare economy tickets, or military personnel and their families traveling on official orders.

Most U.S. airlines charge customers who check more than one piece of luggage.

Among major carriers, AMR Corp.'s American Airlines, the nation's largest carrier, was the first to impose a fee for the first checked bag, beginning in June. AMR Chairman and Chief Executive Gerard Arpey conceded his airline took "a little bit of flak" for the fee.

Continental's decision leaves Atlanta-based Delta Air Lines as the only holdout among the six so-called legacy carriers. Southwest Airlines also doesn't charge for the first bag.

Continental Chairman and CEO Lawrence Kellner said this summer that his airline was watching how the fee worked at other airlines - whether it caused delays in boarding - and whether customers would rather pay a fare increase than face a bunch of fees.

"My general view is if those people need a product, how do we put that in an all-inclusive fare?" he said at the time.

But in the nearly three months since American's fee took effect and other carriers began matching it, it hasn't seemed to sway customers.

"We thought we would see more of a market shift by not having the fee," Continental spokeswoman Julie King said Friday. "So we feel it's the right competitive move" to charge for a first checked bag.

King said the fee would help offset fuel costs that remain high despite the recent decline in oil prices.

Shares of Continental rose 11 cents to $18.06.

Share this:

Loading Comments...

Email Print

ADVERTISEMENT